The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

The selling price of the companys product is $19 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $72,200.

The company expects to start the first quarter with 2,400 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,600 units.

Required:

Compute the companys total sales.

Complete the schedule of expected cash collections.

Prepare the companys production budget for the upcoming fiscal year.

Q 12,000 2nd Quarter3rd Quarten 2nd Quarter 13,000 3rd Quarter 15,000 4th Quarter 14,000 1st Quarter Budgeted unit sales